Natalie hires an assistant at an hourly wage of $8 to help with cookie making and some administrative duties. 5 Natalie teaches the class that was booked on November 25. The balance outstanding is received.

8 Cookie Creations receives a check for the amount due from the neighborhood school for the class given on November 30.

9 Cookie Creations receives $750 in advance from the local school board for five classes that the company will give during December and January.

15 Pays the cell phone invoice outstanding at November 30.

16 Issues a check to Natalies brother for the amount owed for the design of the website.

19 Receives a deposit of $60 on a cookie class scheduled for early January.

23 Additional revenue during the month for cookie-making classes amounts to $4,000. (Natalie has not had time to account for each class individually.)

$3,000 in cash has been collected and $1,000 is still outstanding. (This is in addition to the December 5 and December 9 transactions.)

23 Additional baking supplies purchased during the month for sugar, flour, and chocolate chips amount to $1,250 cash.

23 Issues a check to Natalies assistant for $800. Her assistant worked approximately 100 hours from the time in which she was hired until December 23.

28 Pays a dividend of $500 to the common shareholder (Natalie).

As of December 31, Cookie Creations year-end, the following adjusting entry data are provided.

1. A count reveals that $45 of brochures and posters were used.

2. Depreciation is recorded on the baking equipment purchased in November.

The baking equipment has a useful life of 5 years. Assume that 2 months worth of depreciation is required.

3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1.

4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) Round to the nearest dollar.

5. One months worth of insurance has expired.

6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neighborhood community center on December 31. In early January, Cookie Creations sends an invoice for $450 to the community center.

7. A count reveals that $1,025 of baking supplies was used.

8. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15.

9. Because the unexpected cookie-making class on December 31 was for such a large group of children, Natalies assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour.

10. An analysis of the Unearned Service Revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of December. The $60 deposit received on December 19 for another class also remains unearned.

Instructions

Using the information that you have gathered and the general ledger accounts that you have prepared through Chapter 3, plus the new information above, do the following.

(a) Journalize the above transactions.

(b) Post the December transactions. (Use the general ledger accounts prepared in Chapter 3.)

(c) Prepare a trial balance at December 31, 2014

.(d) Prepare and post adjusting journal entries for the month of December.

(e) Prepare an adjusted trial balance as of December 31, 2014.

(f) Prepare an income statement and a retained earnings statement for the 2-month peri-od ending December 31, 2014, and a classified balance sheet as of December 31, 2014.

(g) Prepare and post-closing entries as of December 31, 2014.

(h) Prepare a post-closing trial balance.

P8-2B At December 31, 2013, Dustin Company reported this information on its balance sheet.

Accounts receivable $960,000Less: Allowance for doubtful accounts 78,000During 2014, the company had the following transactions related to receivables.

1. Sales on account $3,600,000

2. Sales returns and allowances 150,000

3. Collections of accounts receivable 3,100,000

4. Write-offs of accounts receivable deemed uncollectible 92,000

5. Recovery of bad debts previously written off as uncollectible 28,000

Instructions

(a) Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Omit cost of goods sold entries.)

(b) Enter the January 1, 2014, balances in Accounts Receivable and Allowance for Doubt-ful Accounts, post the entries to the two accounts (use T-accounts), and determine the balances.

(c) Prepare the journal entry to record bad debt expense for 2014, assuming that aging the accounts receivable indicates that expected bad debts are $140,000.

(d) Compute the accounts receivable turnover and average collection period.

P8-6B On January 1, 2014, Alter Company had Accounts Receivable $154,000; Notes Receivable of $12,000; and Allowance for Doubtful Accounts of $13,200. The note receiv-able is from Hartwig Company. It is a 4-month, 9% note dated December 31, 2013.

Alter Company prepares financial statements annually. During the year, the following selected transactions occurred.

Jan. 5 Sold $10,000 of merchandise to Flynn Company, terms n/15.

20 Accepted Flynn Companys $10,000, 3-month, 6% note for balance due.

Feb. 18 Sold $4,000 of merchandise to Mink Company and accepted Minks $4,000, 6-month, 8% note for the amount due.

Apr. 20 Collected Flynn Company note in full. 30 Received payment in full from Hartwig Company on the amount due.

May 25 Accepted Creech Inc.s $9,000, 6-month, 4% note in settlement of a past-due balance on account.

Aug. 18 Received payment in full from Mink Company on note due.Sept. 1 Sold $5,000 of merchandise to Glazer Company and accepted a $5,000, 6-month, 6% note for the amount due.

Instructions

Journalize the transactions (Omit Cost of goods sold entries)

P9-2B. At December 31, 2013, Tong Corporation reported these plant assets.

Land $ 4,000,000Buildings $28,800,000Less: Accumulated depreciationbuildings 11,520,000 17,280,000Equipment 48,000,000

Less: Accumulated depreciationequipment 5,000,000 43,000,000

Total plant assets $64,280,000

During 2014, the following selected cash transactions occurred

Apr. 1 Purchased land for $2,600,000.

May 1 Sold equipment that cost $750,000 when purchased on

January 1, 2009. The equipment was sold for $367,000.

June 1 Sold land purchased on June 1, 2002, for $2,000,000.

The land cost $800,000.

Sept. 1 purchased equipment for $840,000.

Dec. 31 Retired equipment that cost $470,000

When purchased on December 31, 2004. No salvage value was received.

Instructions

(a) Journalize the transactions. ( Hint: You may wish to set up T-accounts, post beginning balances, and then post 2014 transactions.) Tong uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 40-year life and no salvage value; the equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement.

(b) Record adjusting entries for depreciation for 2014.

(c) Prepare the plant assets section of Tongs balance sheet at December 31, 2014.

*P9-7B In recent years Howard Company has purchased three machines. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each machine, and various methods have been used. Information concerning the machines is summarized in the table below.

Salvage Useful Life Machine Acquired Cost Value (in years) Depreciation Method 1 July 1, 2012 $68,000 $5,000 7 Straight-line 2 Apr. 1, 2013 64,000 6,000 4 Declining-balance 3 Sept. 1, 2013 84,000 4,000 8 Units-of-activity

For the declining-balance method, Howard Company uses the double-declining rate.

For the units-of-activity method, total machine hours are expected to be 40,000.

Actual hours of use in the first 3 years were: 2013, 1,200; 2014, 6,400; and 2015, 7,000.

Instructions

(a) Compute the amount of accumulated depreciation on each machine at December 31, 2015.

(b) If machine 2 was purchased on November 1 instead of April 1, what would be the depreciation expense for this machine in 2013?

In 2014? (Round to the nearest dollar.)